Keygo (Kigo AM)

History

2023: Raising $0.5 million in investments

Keygo, a short-term rental startup with an automated check-in system and guest support, raised $0.5 million in the first investment round with a business valuation of $3.5 million. Among the investors of the project are Eduard Tiktinsky, Viktor Khristenko, Daniil Shuleiko, Sergey Limonov, Sergey Bugorsky, Alexander Akopov. The project has already been launched in Thailand and Armenia, the startup plans to have more than 10,000 apartments in 10 countries in the next four years.

Keygo implements a short-term residential rental service with a full service cycle for customers: from finding and booking the right option, accompanying during accommodation for all emerging issues to check-out and cleaning the premises. The company has fully automated some of the processes: for example, instead of a classic reception, users have access to support in the 24/7 application, check-in and check-out from the apartments is carried out without employees or owners of the premises. This reduces the number of unnecessary interactions, optimizing user time, and allows you to reduce the costs that are typical, for example, for the hotel business.

The startup takes a long-term lease from the owners of residential premises that meet its requirements for location and condition. On average, objects are rented for a period of 1 year. In order to make housing more attractive and comfortable for short-term rentals, as well as to distinguish it from competitors, the service is engaged in home staging. It includes interior equipment, equipping apartments with objects of hospitality and individual use, as well as household trifles. At the exit, the user receives guaranteed high-quality housing with a well-thought-out and stylish interior, comparable in level with high-end hotels.

We observe how the hotel services market has risen again, continues to grow rapidly and has already overtaken pre-pandemic indicators - its volume is estimated at $1 trillion per year. We target the markets of tier-2 countries, such as Southeast Asia and, they Latin America are estimated within $700 billion per year. People began to travel again, and even more than before: pandemics for a long time they were deprived of this and do not want to limit themselves. Moreover remote work format , thanks to the appearance of such a type of travelers as "digital nomads." We launched such a project with a simplified check-in and check-out system for proven high-quality apartments and a guaranteed full-fledged non-unsubscribe support system, for which, for example, aggregators are often criticized. The average payback period for one object for us is 4-6 months with a return on investments of 250% during the year, - commented the co-founder of the project Dmitry Sigov.

As of October 2023, more than 50 apartments in Bangkok and Yerevan are already under the management of Keygo. The pilot was launched in February 2023, during which time more than 500 people have already managed to rent apartments through the service. The current business estimate is $3.5 million.

For users, Keygo properties are available on Airbnb, Booking, Ostrovok.ru, Суточно.ру. platforms In the near future, the service will have its own application, where it will be possible to book accommodation without a commission.

After booking, customers automatically receive instructions for check-in, and before leaving - the corresponding notification. In the future, the system of access to housing through lockboxes will be upgraded to code locks. And in the future, Keygo plans to introduce NFC tags in the application, with the help of which housing will be accessed.

We do not perform the functions of an aggregator and do not limit ourselves to this, our task is to provide a full range of services for the duration of our stay in the apartments turnkey. Through Keygo, customers can find great options to stay in convenient locations and be sure that we will stay in touch on any issues until the check-out itself, as if you are staying at a hotel with excellent service. At the same time, we are favorably distinguished from hotel chains by a wider set of options (our customers use their own kitchen, washing and drying machines, etc.), a convenient arrival system, in which you do not need to wait for an employee at the reception, communicate with him, etc., and all questions regarding accommodation are easily resolved through chat with the support service, where we are in touch around the clock. In order to resolve your question, you do not need to go anywhere or call. We are fully responsible for renting out the apartments and can guarantee the quality of the accommodation we offer. This is a significant advantage, taking into account the monotony of chain hotels, the pricing policy of boutique hotels and the unpredictable results when renting housing from private landlords, "said Keygo co-founder Gevorg Beglaryan.

In order to become a Keygo partner, the homeowner just needs to leave an application on the site, after which a responsible employee of the company will contact him. To connect, you will need a photo and address of the property. If the location and condition meet the requirements of the service, the technical specialist will agree on an on-site inspection of the apartment, and then provide an agreement for signing.

The founders of the Keygo startup were Gevorg Beglaryan and Dmitry Sigov, who launched and developed Yandex products in international markets, in particular, Yandex.Taxi and Yandex.Ed. The team managed to work in 16 countries, including the CIS, Africa, the Baltic States and Israel, brought services to new markets and built operational processes from scratch.

In the short term, Keygo will concentrate on development in Southeast Asia and plans to increase the number of properties managed by the company to 1,000 in 2024.

In addition, the company is considering working with small hotels (up to 15 rooms), equipping them with smart locks and automating check-in and eviction processes. According to Keygo estimates, this will increase the efficiency of such facilities by an average of 50%.